Market Sense and Sentiment

[Bernard Ng]

IndexPulse TrendWatch for Wednesday

Overall Market:
Long Term: Short
Medium Term: Long
Short Term: Short

Time Frame and Trading Signals: as stated in iBox

Futures are green. FTSE is trading at HOD after the morning catchup with INDU. TNX is trading flat. The market looks bullish at the moment. The testing signal agrees with the green futures, and suggesting us to fade the gap and hold on to it. The Plan is Bullish, to follow the testing signal or not, it's your call. I still like the bear and will fade the gap, will probably cover it at 8400, probably 8375. The rally from yesterday was started by a false rumor, but it ends up starting a respectable rally, and turned INDU to from bearish to bullish on a daily basis. Would it be a trap, that's what I'm betting on so far, as we have also topped out on a daily basis, even though we've just turned bullish.

Fed's Beige Book will come out today at 2:00pm today. don't expect it to do much to the market.

INDU's 5 day MACD support at -30, resistance at +40. We are right at MACD resistance, and about to do a crossunder.

INDU should have a trading range between 8375 and 8500.
NDX should have a trading range between 1085 and 1110.
SPX should have a trading range between 895 and 915.
JMHO.